Gold prices in India have reached a record high, causing confusion among buyers as the festive and wedding seasons approach. There is uncertainty about whether to purchase jewellery now or wait for a potential price drop. However, many global brokerage firms predict that the gold boom will continue, with prices potentially rising by 229 percent in the coming years.
Global uncertainties combined with traditional buying habits by Indians are driving this boom. Darshan Desai, CEO of Aspect Bullion & Refinery, states, “There will be some ups and downs, but the demand for safe investments and the global economic situation will continue to support prices.“
Aksha Kamboj, vice president of the Indian Bullion & Jewellers Association (IBJA), advises that it is challenging to pinpoint the market’s lowest point. She suggests that purchasing gradually would be prudent, as a significant decline is unlikely.
Former IBJA president Mohit Kamboj asserts that even if the market stabilises temporarily, festive demand and the flow of safe investments will prevent a significant drop in gold prices.
Somen Bhowmik, managing director of CaratLane, highlights that gold is not merely an investment for Indians; it is deeply intertwined with emotions and traditions. He notes that any price reduction prompts immediate buying.
Mangesh Chauhan of Skygold & Diamonds recommends that buyers opt for low-carat gold or 24-carat gold to balance affordability and investment.
Gold is currently priced at $3650 per ounce. Rajul Kothari of Capital League predicts that gold could reach $3700-3800 shortly, although a short-term decline of 2 to 5 percent is also possible.
The current price of gold is Rs 1.10 lakh per 10 grams. Swiss Asia has made the boldest prediction, suggesting gold prices could increase by 119 to 229 percent by 2032. If gold prices rise by 119 percent, the new price could be around Rs 2,40,900 per 10 grams. Should the increase reach 229 percent, the price could climb to Rs 3,61,900 per 10 grams, meaning gold could range from Rs 2.40 lakh to Rs 3.61 lakhs per 10 grams in the next seven years.
Juerg Kiener, Managing Director and Chief Investment Officer of Swiss Asia Capital, anticipates a 37 to 120 percent increase in gold prices over the next few years. Citigroup estimates a 9.6 percent rise, potentially bringing gold to around Rs 1,20,560 per 10 grams, while Goldman Sachs forecasts a 37 percent increase, which could elevate gold prices to Rs 1,50,700 per 10 grams.
Experts advise against making large gold purchases at once. Darshan Desai from Aspect Bullion & Refinery suggests buying in the coming weeks is considered auspicious.
Investors are advised to adopt a gradual approach while investing. One strategy is to allocate about 25% of the total budget initially and buy more if prices fall by 2-5%, planning the rest according to future strategies. A prudent move would be to begin with a modest investment in gold, around 20-30% at current levels, while keeping the remainder in cash reserves. Since gold prices are expected to rise in the medium term, continuing with incremental investments is considered a wise approach.
(Disclaimer: The investment information provided here is general. News18 or its management is not responsible for it. Use discretion and seek expert advice before making any investment.)
